Ecosystem with Big Technology for Insurers

Background and Purpose

Amazon, JPMorgan Chase, and Berkshire Hathaway formed a joint venture to tackle health care problems, which ended its course within three years after the launch.

BlackRock and Microsoft announced their intention to form a strategic partnership; the initiative led to migrating BlackRock’s unified investment and operations solution, Aladdin, to be hosted on Azure.

Engagement between the technology sector and insurance industry have frequently made headlines in the past few years. On one hand, insurance is an enormous market that the technology sector cannot ignore, yet it’s so complex that they may struggle to fully grasp the landscape. On the other hand, insurers are desperate for technology advancement in order to reduce costs and create efficiency and value for its customers. The benefit for collaboration is substantial; the question is what is important for a great execution?

Research Objective

The Actuarial Innovation & Technology Steering Committee (AITSC) is seeking researchers to submit proposals on the topic of Ecosystem with Big Technology for Insurers - Partnerships, Competition, and States in between. The following are examples of proposed topics that may be addressed:

  • How would Big Tech’s involvement lead to innovation and value creation for the insurance industry?
  • What are some prior and existing initiatives: their key development and lessons learned?
  • What are some common forms of engagement between the Technology sector and insurance industry?
  • What are the key operating factors (including technology, culture, and governance, etc.) between Big Technology and Insurers that can impact the form of engagement?
  • What are Big Tech’s unique selling points to tackle insurance problems?
  • What types of programs Big Tech are providing to support innovation, specifically for insurance? What will be the requirement to enter, and what are some expected benefits?
  • What should be the desirable future state of engagement?

Note that the list above is not meant to be exhaustive, but merely examples of proposed topics that may be researched. The AITSC is also open about the focus area and format of the research. A few examples include, but not limited to:

  • Lessons learned from existing partnerships and/or ongoing initiatives;
  • Technology as an enabler to provide differentiating advantages for InsurTechs and/or traditional insurance companies;
  • Challenges faced by the insurance industry that Big Techs are well positioned to tackle;
  • The format of the research can be a White Paper, or
  • It could also be a survey among a defined pool of encumbered insurance companies and/or existing InsurTechs.

Proposal Requirements

To facilitate the evaluation of proposals, the following information should be submitted:

  1. Resumes of the researcher(s), including any graduate student(s) expected to participate, indicating how their background, education and experience bear on their qualifications to undertake the research. If more than one researcher is involved, a single individual should be designated as the lead researcher and primary contact. The person submitting the proposal must be authorized to speak on behalf of all the researchers as well as for the firm or institution on whose behalf the proposal is submitted.
  2. An outline of the approach to be used (e.g. literature search, model, etc.), emphasizing issues that require special consideration. Details should be given regarding the techniques to be used, collateral material to be consulted, and possible limitations of the analysis.
  3. A description of the expected deliverables and any supporting data, tools or other resources.
  4. Cost estimates for the research, including computer time, salaries, report preparation, material costs, etc. Such estimates can be in the form of hourly rates, but in such cases, time estimates should also be included. Any guarantees as to total cost should be given and will be considered in the evaluation of the proposal. While cost will be a factor in the evaluation of the proposal, it will not necessarily be the decisive factor.
  5. A schedule for completion of the research, identifying key dates or time frames for research completion and report submissions. The AITSC is interested in completing this project in a timely manner. Suggestions in the proposal for ensuring timely delivery, such as fee adjustments, are encouraged.
  6. Other related factors that give evidence of a proposer's capabilities to perform in a superior fashion should be detailed.

Selection Process

The AITSC will appoint a Project Oversight Group (POG) to oversee the project. The [sponsoring entity/POG] is responsible for recommending the proposal to be funded. Input from other knowledgeable individuals also may be sought, but the AITSC will make the final recommendation, subject to Society of Actuaries Research Institute (SOA) leadership approval. An SOA staff research actuary will provide staff actuarial support.

Questions

Any questions regarding this RFP should be directed to David Schraub, SOA Senior Practice Research Actuary at dschraub@soa.org or +1-847-706-3560.

Notification of Intent to submit Proposal

If you intend to submit a proposal, please email a written notification by September 9th, 2022 to Korrel Crawford at kcrawford@soa.org.

Submission of Proposal

Please email your proposal to Korrel Crawford at kcrawford@soa.org; proposals must be received no later than September 23rd. It is anticipated that all proposers will be informed of the status of their proposal by the end November 2022.

Conditions

The selection of a proposal is conditioned upon and not considered final until a Letter of Agreement is executed by both the Society of Actuaries Research Institute and the researcher.

The Society of Actuaries Research Institute /AITSC reserves the right to not award a contract for this research. Reasons for not awarding a contract could include, but are not limited to, a lack of acceptable proposals or a finding that insufficient funds are available. The Society of Actuaries Research Institute /AITSC also reserves the right to redirect the project as is deemed advisable.

The Society of Actuaries Research Institute /AITSC plans to hold the copyright to the research and to publish the results with appropriate credit given to the researcher(s).

The Society of Actuaries Research Institute /AITSC may choose to seek public exposure or media attention for the research. By submitting a proposal, you agree to cooperate with the [Society of Actuaries/sponsoring entity] in publicizing or promoting the research and responding to media requests.

The Society of Actuaries Research Institute /AITSC may also choose to market and promote the research to members, candidates and other interested parties. You agree to perform promotional communication requested by the Society of Actuaries Research Institute /AITSC, which may include, but is not limited to, leading a webcast on the research, presenting the research at an SOA meeting, and/or writing an article on the research for an SOA newsletter.